'Fast Money' Recap: A Busy Day for Oracle, Yahoo! and Alibaba

NEW YORK (TheStreet) -- The S&P 500 climbed 0.49% but it was a busy day in the markets. On CNBC's "Fast Money" TV show, the trading panel started with Oracle's (ORCL) earnings report and CEO Larry Ellison's decision to step down. The company missed on top and bottom line estimates. 

Guy Adami, managing director of stockmonster.com, pointed out Oracle also reported disappointing operating margins. However, at just 12 times forward earnings and with support near $40, he is a buyer of the stock. 

Dan Nathan, co-founder and editor of riskreversal.com, said investors can take a shot at the stock on the long side near $40 because several upcoming conferences could act as positive catalysts. 

Pete Najarian, co-founder of optionmonster.com and trademonster.com, who is long Oracle, said the new CEO, Mark Hurd, should be able to grow revenue. The company needs to find growth by growing its cloud business, he said. 

Jon Najarian, co-founder of optionmonster.com and trademonster.com, suggested that Salesforce.com (CRM) is not crushing Oracle in the cloud, despite what some investors may think. He likes Oracle on the long side.

Dan Ives, senior analyst at FBR Capital Markets, said Oracle is a experiencing a "painful transition to the cloud," which is why the company reported such a "soft" quarter. The new CEO will have his work cut out for him -- but in order for the stock to go meaningfully higher, the company needs to find growth. 

Dave Barger, the CEO of JetBlue Airways (JBLU) has also announced he will retire. Adami said he liked the CEO and thought he did a great job at the company. He continues to like the stock on the long side. Pete Najarian likes JetBlue but not as much as United Continental Holdings (UAL) , American Airlines (AAL)  and Delta Air Lines (DAL) .

Alibaba will officially price its IPO at $68 per share and is scheduled to begin trading under BABA on Friday. Eric Jackson, founder and managing partner of Ironfire Capital and a contributor to TheStreet, discussed his long position in Yahoo! (YHOO) .

He said investors should not sell Yahoo! because the stock potentially has more upside than Alibaba. Yahoo! will still own 16.3% of Alibaba after the initial public offering and if it can find a way to effectively manage its tax bill on the remaining stake, it will ultimately be very valuable. A company like Softbank could consider buying Yahoo! within the next six months. The pricing of Alibaba is fair, he said, as the underwriters and the company do not want to see it go the way of the Facebook (FB) IPO. 

Nathan said that $68 will act as support for Alibaba on the first day of trading. Investors need to use limit orders if they plan to buy, not market orders. Pete Najarian said he doesn't think Alibaba will even touch $68 per share when the stock opens for trading. It will probably open in the mid-$70s, he said. 

Adami said he's "in the take profits camp" in regards to Yahoo!. If it dips below $40, investors can likely buy it again. Nathan pointed out there are a lot of investors targeting $50 per share in Yahoo!, according to the options activity. Pete Najarian said that is his target as well. 

Jon Najarian said Yahoo! could trade irrationally for several sessions due to the large number of options positions being held by traders. He plans to be a long-term shareholder in shares of Alibaba.

SAP AG (SAP) will buy Concur Technologies (CNQR) for $129 per share. At 10 times sales, Nathan called the deal expensive. Circling back to Oracle, he said a deal at this valuation is not something that investors would want to see under the new management.

CNBC's Sara Eisen said the currency market is pricing in a "no" vote on Scottish independence. The vote has attracted an impressive 90% of the voting population. If the country approved independence it would put a lot of pressure on the British pound, she said, at a time when currency markets have been very volatile. 

Rite Aid (RAD) fell 19% and was the first stock on the show's "Pops & Drops" segment. Pete Najarian said the initial earnings report looked good but guidance was terrible, which is what ultimately dragged the stock lower.

SanDisk (SNDK) climbed 3%. Jon Najarian said he is bullish on the stock, along with Skyworks Solutions (SWKS) and Ambarella (AMBA) . 

Kohl's (KSS) popped 2%. Nathan said investors can buy the stock near $60, with a target of $70 within the next six months.

Brian David Johnson, an Intel (INTC) futurist and the architect behind the company's "Jimmy" the robot, was a guest on the show. These robots will be capable of entertaining a child or assisting the elderly, Johnson explained. While "big Jimmy" costs $16,000, "Little Jimmy" only costs $1,600; this smaller robot goes on sale on Saturday. The robots run on applications that are controlled through a computer, smartphone or tablet via the Internet or Bluetooth. Currently, the battery life is just 30 minutes to 60 minutes. 

Adami called shares of Intel "fine" at current levels and said investors can stay long the stock. Nathan said that while Intel has a strong balance sheet and a good dividend he is not a buyer of the stock. Pete Najarian is a buyer of Intel, reasoning the stock still has further upside.

Nathan pointed out some interesting options activity in shares of Peabody Energy (BTU) . While someone bought a large position in the January $13 put options, that person also bought a lot of the common stock. The puts are being used as downside protection but, overall, supports a bullish thesis. He suggested that simply buying call options would be a more simple method for most investors. 

For their final trades, Nathan is a buyer of Oracle and Pete Najarian is buying Ford (F) . Jon Najarian is a buyer of Hertz Global Holdings (HTZ) and Adami is buying Jack In The Box (JACK) .


-- Written by Bret Kenwell in Petoskey, Mich.

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

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